Just an IRS alert:
For many years, we used 1099-Misc to report payment to nonemployee compensation (money we paid another individual or company) most often for services they provided above $600.
That’s changed this year and I am providing some resources to you to learn more. Unfortunatly, the IRS has not changed the process by which we complete NEC or the MISC form. So remember: you need an original copy of a form, available free to order at IRS website or buy in your local Office Supply store, etc. Do not find a form and then print it from an online source.
Beginning with Tax Year 2020, you must use Form 1099-NEC, Nonemployee Compensation, to report payments of nonemployee compensation (NEC) previously reported in box 7 on Form 1099-MISC. Do not order Form 1099-MISC for reporting NEC. The separate instructions for filers/issuers for Form 1099-NEC are available in the 2020 Instructions for Forms 1099-MISC and 1099-NEC.
To learn more about 1099 NEC and the change
To order free 1099 NEC forms and instructions
NOTE: I am not a Tax Advisor. I am providing this information FYI. Please consult your CPA, Accountant, EA, or tax advisor before using any of the information provided above.
Upwards and onwards,
Coach Maria
